Completed construction on two UDR/MetLife JV and four West Coast
Development JV projects comprising 1,784 homes in San Francisco, Los
Angeles, Seattle and Anaheim, CA.

Commenced construction on three communities, including two UDR/MetLife
JV communities, comprising 1,118 homes in Boston, Los Angeles and
Addison, TX.

Acquired three communities comprising 508 homes in the Seattle MSA
through 1031 exchanges.

Sold nine communities, including one UDR/MetLife community, comprising
2,034 homes in Baltimore and Dallas.

Issued $173.6 million of common equity in conjunction with the
Company’s inclusion in the S&P 500 index.

Issued $300.0 million of 10-year unsecured debt at 2.95 percent.

Q4 2016

Q4 2015

FY 2016

FY 2015

Net income per common share, diluted

$

0.88

$

0.61

$

1.08

$

1.29

Conversion from GAAP share count

(0.046

)

(0.041

)

(0.189

)

(0.096

)

Net gain on the sale of depreciable real estate owned

(0.872

)

(0.650

)

(0.961

)

(1.180

)

Depreciation and amortization

0.426

0.430

1.749

1.567

Noncontrolling interests and preferred dividends

0.085

0.060

0.117

0.078

FFO per common share and unit, diluted

$

0.47

$

0.41

$

1.80

$

1.66

Acquisition-related costs/(fees), including JVs

0.001

0.005

0.001

0.013

Cost/(benefit) associated with debt extinguishment, other

-

-

0.006

-

Texas Joint Venture promote and disposition fee income

-

(0.001

)

-

(0.036

)

Long-term incentive plan transition costs

0.001

0.003

0.003

0.013

Net gain on the sale of non-depreciable real estate owned

-

-

(0.006

)

-

Legal claims, net of tax

-

0.002

(0.002

)

0.003

Net loss on sale of unconsolidated land

-

-

0.003

-

Severance costs and other restructuring expense

0.003

-

0.003

-

Tax benefit – conversion of TRS entities into REITs

(0.008

)

-

(0.008

)

-

Casualty-related (recoveries)/charges, including JVs, net

(0.005

)

0.007

(0.010

)

0.017

FFO as Adjusted per common share and unit, diluted

$

0.46

$

0.42

$

1.79

$

1.67

Recurring capital expenditures

(0.054

)

(0.050

)

(0.160

)

(0.164

)

AFFO per common share and unit, diluted

$

0.40

$

0.37

$

1.63

$

1.51

A reconciliation of FFO, FFO as Adjusted and AFFO to GAAP Net
income attributable to common stockholders can be found on Attachment 2
of the Company’s fourth quarter Supplemental Financial Information.

Operations

Total revenue increased by $5.4 million or 2 percent, to $243.0 million
for the fourth quarter and $65.2 million or 7 percent, to $959.9 million
for full-year 2016. This increase was primarily due to growth in revenue
from same-store and stabilized, non-mature communities.

Same-store NOI increased 5.3 percent year-over-year in the fourth
quarter of 2016 and was driven by same-store revenue growth of 5.0
percent against a 4.2 percent increase in same-store expenses.
Same-store physical occupancy was 96.8 percent as compared to 96.5
percent in the prior year period. The fourth quarter annualized rate of
turnover was 42.5 percent representing a 110 basis point decline
year-over-year.

During the fourth quarter, 32,265 apartment homes, or
approximately 82 percent of 39,454 total consolidated apartment
homes (versus 49,907 apartment homes inclusive of joint ventures,
preferred equity investments and development pipeline homes upon
completion), were classified as same-store. The Company defines
QTD SS Communities as those communities stabilized for five full
consecutive quarters. These communities were owned and had
stabilized occupancy and operating expenses as of the beginning of
the quarter in the prior year, were not in process of any
substantial redevelopment activities, and not held for disposition.

Sequential same-store NOI increased by 0.3 percent in the fourth quarter
of 2016 on same-store revenue growth of 0.1 percent and a 0.4 percent
decrease in same-store expenses.

During the twelve months, 31,930 apartment homes, or
approximately 81 percent of 39,454 total consolidated apartment
homes (versus 49,907 apartment homes inclusive of joint ventures,
preferred equity investments and development pipeline homes upon
completion), were classified as same-store. The Company defines
YTD SS Communities as those communities stabilized for two full
consecutive calendar years. These communities were owned and had
stabilized occupancy and operating expenses as of the beginning of
the prior year, were not in process of any substantial
redevelopment activities, and not held for disposition.

Development and Redevelopment Activity

At the end of the fourth quarter, the Company’s development pipeline
totaled $1.1 billion. The $1.1 billion consisted of $216.7 million
completed, non-stabilized development projects and $913.2 million of
under-construction development projects. The $913.2 million of
under-construction development projects are scheduled to be delivered
over the next three years, with $112.2 million in 2017, $434.5 million
in 2018 and the balance in 2019. The development pipeline is currently
expected to produce a weighted average spread between estimated
stabilized development yields and current market cap rates in excess of
the upper end of the Company’s 150 to 200 basis point targeted range.

In addition, the Company had preferred equity and participating loan
investments totaling $364.8 million. 100 percent of the Company’s equity
commitments in these projects has been funded. The $364.8 million
consisted of $201.0 million of completed, stabilized developments,
$107.6 million of completed, non-stabilized developments and a $56.2
million under-construction development which is expected to be completed
in late-2017.

During the quarter,

The UDR/MetLife Joint Venture completed construction on 3033 Wilshire,
a 190-home community located in Los Angeles with an estimated cost to
construct of $108.0 million at 100 percent.

The West Coast Development Joint Venture completed construction on
OLiVE DTLA, a 293-home community located in Los Angeles with a
going-in valuation of $129.4 million at 100 percent.

The UDR/MetLife Joint Venture commenced construction on Vitruvian
West, a 383-home community located in Addison, TX with an estimated
cost to construct of $59.0 million at 100 percent and a scheduled
completion date in late-2018.

Wholly-Owned Transactional Activity

As previously announced, the Company sold seven communities, comprising
1,402 homes, in Baltimore for $236.0 million or $168,000 per home.
Additionally, the Company sold a 380-home community located in Dallas
for $48.6 million or $128,000 per home. The eight communities had a
weighted average monthly revenue per occupied home of $1,358, were 31
years old on average and were sold at a weighted average 6.0 percent
cash flow cap rate.

During the quarter, the Company completed a 1031 acquisition of
Milehouse, a 177-home community located in Redmond, WA for $70.2 million
and at a cash flow cap rate of 4.4 percent. The community was recently
completed, had an average monthly revenue per occupied home of $2,192,
is designated LEED Silver and includes high-end amenities and home
finishes.

Joint Venture Transactional Activity

As previously announced, the Company completed 1031 acquisitions of
MetLife’s 50 percent interests in Ten20 and Ashton Bellevue, two
adjacent communities comprising 331 homes and located in Bellevue, WA.
The Company acquired MetLife’s interest for $68.4 million plus the
assumption of $37.9 million of debt. These communities have a weighted
average monthly revenue per occupied home of $3,322 and are 7 years old
on average.

Subsequent to quarter end, the Company exercised its fixed price
purchase option to acquire CityLine, a 244-home West Coast Development
Joint Venture community located in suburban Seattle. The Company’s total
investment in CityLine was $86.5 million. The community was acquired at
a 5.3 percent cash flow cap rate, has an average monthly revenue per
occupied home of $2,018 and further differentiates the Company’s Seattle
area product type, locational and asset quality mixes.

Capital Markets

Subsequent to quarter end, the Company established a $500.0 million
commercial paper program (the “Program”) in the United States. Under the
Program, the Company may issue, from time to time, commercial paper
notes up to a maximum aggregate amount outstanding of $500.0 million.
Standard and Poor’s and Moody’s Investor Service has assigned ratings of
A-2 and P-2, respectively. Proceeds will be used for general corporate
purposes.

Balance Sheet

At December 31, 2016, the Company had $1,156 million in availability
through a combination of cash and undrawn capacity on its credit
facilities.

The Company’s total indebtedness at December 31, 2016 was $3.4 billion.
The Company ended the quarter with fixed-rate debt representing 87.3
percent of its total debt, a total blended interest rate of 3.79 percent
and a weighted average maturity of 5.3 years.

On a consolidated basis, the Company’s leverage was 32.1 percent versus
34.6 percent a year ago, net debt-to-EBITDA was 5.1x versus 5.7x a year
ago and fixed charge coverage was 4.8x versus 4.1x a year ago.

Other

In conjunction with this release, the Company published its 2017/2018
Strategic Outlook which outlines the Company’s long-term strategies, how
the Company has performed versus past Strategic Outlooks and
expectations for 2017 and 2018. The 2017/2018 Strategic Outlook document
is available in the Investor Relations section of the Company’s website
at ir.udr.com.

Dividend

As previously announced, the Company’s Board of Directors declared a
regular quarterly dividend on its common stock for the fourth quarter of
2016 in the amount of $0.295 per share. The dividend will be paid in
cash on January 31, 2017 to UDR common stock shareholders of record as
of January 10, 2017. The fourth quarter 2016 dividend will represent the
177th consecutive quarterly dividend paid by the Company on
its common stock.

In conjunction with this release, the Company has declared a 2017
annualized dividend per share of $1.24, a 5% increase over 2016.

Outlook

For the first quarter of 2017, the Company has established the
following earnings guidance ranges:

Net income per share

$0.08 to $0.09

FFO per share

$0.44 to $0.46

FFO as Adjusted per share

$0.44 to $0.46

AFFO per share

$0.42 to $0.44

For the full-year 2017, the Company has established the following
earnings guidance ranges:

Additional assumptions for the Company’s first quarter and full-year
2017 guidance can be found on Attachment 15 of the Company’s fourth
quarter Supplemental Financial Information. A reconciliation of FFO per
share, FFO as Adjusted per share and AFFO per share to GAAP Net income
per share can be found on Attachment 16(D) of the Company’s fourth
quarter Supplemental Financial Information. Non-GAAP financial measures
and other terms, as used in this earnings release, are defined and
further explained on Attachments 16(A) through 16(D), “Definitions and
Reconciliations,” of the Company’s fourth quarter Supplemental Financial
Information.

Supplemental Information

The Company offers Supplemental Financial Information that provides
details on the financial position and operating results of the Company
which is available on the Company's website at ir.udr.com.

Conference Call and Webcast Information

UDR will host a webcast and conference call at 1:00 p.m. Eastern Time on
January 31, 2017 to discuss fourth quarter and full-year results as well
as its 2017/2018 Strategic Outlook. The webcast will be available on
UDR's website at ir.udr.com.
To listen to a live broadcast, access the site at least 15 minutes prior
to the scheduled start time in order to register, download and install
any necessary audio software.

To participate in the teleconference dial 877-705-6003 for domestic and
201-493-6725 for international. A passcode is not necessary.

A replay of the conference call will be available through March 2, 2017,
by dialing 844-512-2921 for domestic and 412-317-6671 for international
and entering the confirmation number, 13652450, when prompted for the
passcode.

A replay of the call will be available for 30 days on UDR's website at ir.udr.com.

Full Text of the Earnings Report and
Supplemental Data

Internet -- The full text of the earnings report, Supplemental Financial
Information and 2017/2018 Strategic Outlook will be available on the
Company’s website at ir.udr.com.

Mail -- For those without Internet access, the fourth quarter 2016
earnings report, Supplemental Financial Information and 2017/2018
Strategic Outlook will be available by mail or fax, on request. To
receive a copy, please call UDR Investor Relations at 720-348-7762.

Attachment 16(B)

UDR, Inc.

Definitions and Reconciliations

December 31, 2016

(Unaudited)

Held For Disposition Communities: The Company defines Held
for Disposition Communities as those communities that were held for
sale as of the end of the most recent quarter.

Interest Coverage Ratio: The Company defines Interest
Coverage Ratio as net income, excluding the impact of interest
expense, real estate depreciation and amortization of wholly owned
and joint venture communities, other depreciation and amortization,
noncontrolling interests, net gain/(loss) on the sale of real estate
owned, TRS income tax, divided by total interest.

Management considers interest coverage ratio a useful metric for
investors as it provides ratings agencies, investors and lending
partners with a widely-used measure of the Company’s ability to
service its debt obligations as well as compare leverage against
that of its peer REITs. A reconciliation of the components that
comprise interest coverage ratio is provided on Attachment 4(C) of
the Company's quarterly supplemental disclosure.

JV Return on Equity ("ROE"): The Company defines JV
ROE as its share of property NOI plus property and asset management
fee revenue less interest expense, divided by the average of
beginning and ending equity capital for the quarter.

Management considers ROE a useful metric for investors as it
provides a widely used measure of how well the Company is investing
its capital on a leveraged basis.

JV Return on Invested Capital ("ROIC"): The Company
defines JV ROIC as its share of property NOI plus property and asset
management fee revenue divided by the average of beginning and
ending invested capital for the quarter.

Management considers ROIC a useful metric for investors as it
provides a widely used measure of how well the Company is investing
its capital on an unleveraged basis.

Net Debt-to-EBITDA: The Company defines net debt to EBITDA as
total debt net of cash and cash equivalents divided by EBITDA.
EBITDA is defined as net income, excluding the impact of interest
expense, real estate depreciation and amortization of wholly owned
and other joint venture communities, other depreciation and
amortization, noncontrolling interests, net gain/(loss) on the sale
of real estate owned, and TRS income tax.

Management considers net debt to EBITDA a useful metric for
investors as it provides ratings agencies, investors and lending
partners with a widely-used measure of the Company’s ability to
service its debt obligations as well as compare leverage against
that of its peer REITs. A reconciliation between net income and
EBITDA is provided on Attachment 4(C) of the Company's quarterly
supplemental disclosure.

Net Operating Income (“NOI”): The Company defines NOI as
rental income less direct property rental expenses. Rental income
represents gross market rent less adjustments for concessions,
vacancy loss and bad debt. Rental expenses include real estate
taxes, insurance, personnel, utilities, repairs and maintenance,
administrative and marketing. Excluded from NOI is property
management expense which is calculated as 2.75% of property revenue
to cover the regional supervision and accounting costs related to
consolidated property operations, and land rent.

Management considers NOI a useful metric for investors as it is a
more meaningful representation of a community’s continuing operating
performance than net income as it is prior to corporate-level
expense allocations, general and administrative costs, capital
structure and depreciation and amortization and is a widely used
input, along with capitalization rates, in the determination of real
estate valuations. A reconciliation from net income attributable to
UDR, Inc. to NOI is provided below.

In thousands

4Q 2016

3Q 2016

2Q 2016

1Q 2016

4Q 2015

Net income/(loss) attributable to UDR, Inc.

$

237,617

$

26,956

$

17,946

$

10,393

$

162,200

Property management

6,603

6,607

6,494

6,379

6,445

Other operating expenses

2,369

1,636

1,892

1,752

3,534

Real estate depreciation and amortization

102,537

105,802

105,937

105,339

104,909

Interest expense

29,295

31,954

30,678

31,104

33,170

Casualty-related (recoveries)/charges, net

(1,102

)

205

1,629

-

(45

)

General and administrative

13,256

11,826

10,835

13,844

17,993

Tax (benefit)/provision, net

(3,063

)

94

(402

)

(403

)

(1,424

)

(Income)/loss from unconsolidated entities

(35,945

)

(15,285

)

(325

)

(679

)

(1,052

)

Interest income and other (income)/expense, net

(481

)

(478

)

(540

)

(431

)

(407

)

Joint venture management and other fees

(2,927

)

(2,997

)

(2,618

)

(2,858

)

(3,253

)

Other depreciation and amortization

1,458

1,526

1,486

1,553

1,899

(Gain)/loss on sale of real estate owned, net of tax

(200,466

)

-

(7,315

)

(3,070

)

(172,635

)

Net income/(loss) attributable to noncontrolling interests

22,129

2,510

1,618

1,211

14,963

Total consolidated NOI

$

171,280

$

170,356

$

167,315

$

164,134

$

166,297

Forward-Looking Statements

Certain statements made in this press release may constitute
“forward-looking statements.” Words such as “expects,” “intends,”
“believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,”
“estimates” and variations of such words and similar expressions are
intended to identify such forward-looking statements. Forward-looking
statements, by their nature, involve estimates, projections, goals,
forecasts and assumptions and are subject to risks and uncertainties
that could cause actual results or outcomes to differ materially from
those expressed in a forward-looking statement, due to a number of
factors, which include, but are not limited to, unfavorable changes in
the apartment market, changing economic conditions, the impact of
inflation/deflation on rental rates and property operating expenses,
expectations concerning availability of capital and the stabilization of
the capital markets, the impact of competition and competitive pricing,
acquisitions, developments and redevelopments not achieving anticipated
results, delays in completing developments, redevelopments and lease-ups
on schedule, expectations on job growth, home affordability and
demand/supply ratio for multifamily housing, expectations concerning
development and redevelopment activities, expectations on occupancy
levels and rental rates, expectations concerning the joint ventures with
third parties, expectations that automation will help grow net operating
income, expectations on annualized net operating income and other risk
factors discussed in documents filed by the Company with the Securities
and Exchange Commission from time to time, including the Company's
Annual Report on Form 10-K and the Company's Quarterly Reports on Form
10-Q. Actual results may differ materially from those described in the
forward-looking statements. These forward-looking statements and such
risks, uncertainties and other factors speak only as of the date of this
press release, and the Company expressly disclaims any obligation or
undertaking to update or revise any forward-looking statement contained
herein, to reflect any change in the Company's expectations with regard
thereto, or any other change in events, conditions or circumstances on
which any such statement is based, except to the extent otherwise
required under the U.S. securities laws.

About UDR, Inc.

UDR, Inc. (NYSE:UDR),
an S&P 500 company, is a leading multifamily real estate investment
trust with a demonstrated performance history of delivering superior and
dependable returns by successfully managing, buying, selling, developing
and redeveloping attractive real estate properties in targeted U.S.
markets. As of December 31, 2016, UDR owned or had an ownership position
in 49,907 apartment homes including 3,604 homes under development or in
preferred equity investments. For over 45 years, UDR has delivered
long-term value to shareholders, the best standard of service to
residents and the highest quality experience for associates. Additional
information can be found on the Company's website at ir.udr.com.

Attachment 1

UDR, Inc.

Consolidated Statements of Operations (1)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

In thousands, except per share amounts

2016

2015

2016

2015

REVENUES:

Rental income

$

240,081

$

234,352

$

948,461

$

871,928

Joint venture management and other fees (2)

2,927

3,253

11,400

22,710

Total revenues

243,008

237,605

959,861

894,638

OPERATING EXPENSES:

Property operating and maintenance

40,075

41,174

159,947

155,096

Real estate taxes and insurance

28,726

26,881

115,429

102,963

Property management

6,603

6,445

26,083

23,978

Other operating expenses

2,369

3,534

7,649

9,708

Real estate depreciation and amortization

102,537

104,909

419,615

374,598

Acquisition costs

152

1,433

213

2,126

General and administrative

13,104

16,560

49,548

57,564

Casualty-related (recoveries)/charges, net

(1,102

)

(45

)

732

2,335

Other depreciation and amortization

1,458

1,899

6,023

6,679

Total operating expenses

193,922

202,790

785,239

735,047

Operating income

49,086

34,815

174,622

159,591

Income/(loss) from unconsolidated entities (3)

35,945

1,052

52,234

62,329

Interest expense

(29,295

)

(33,170

)

(121,302

)

(121,875

)

(Cost)/benefit associated with debt extinguishment and other

-

-

(1,729

)

-

Total interest expense

(29,295

)

(33,170

)

(123,031

)

(121,875

)

Interest income and other income/(expense), net

481

407

1,930

1,551

Income/(loss) before income taxes and gain/(loss) on sale of real
estate owned

(2) 4Q 2015 and YTD 2015 presented above include
approximately $0.4 million and $10.0 million of promote and
disposition fee income in connection with the January 2015 sale of
eight communities held by the Texas Joint Venture.

(4) In October 2015, UDR completed the acquisition of six
Washington, DC area communities from Home Properties, L.P. for a
total purchase price of $901 million. Four of the six communities
were acquired through UDR's 50.1% ownership in newly formed UDR
Lighthouse DownREIT L.P. (the “DownREIT Partnership”). The
increase in the percentage of net income attributable to
noncontrolling interests during the 4th quarter relates to third
parties' 49.9% interest in the DownREIT Partnership.

(5) Due to the quarterly calculation of noncontrolling
interest, the sum of the quarterly amounts will not equal the
annual totals.

FFO as Adjusted attributable to common stockholders and
unitholders, diluted

$

135,995

$

123,277

$

527,919

$

461,919

FFO as Adjusted per common share and unit, diluted

$

0.46

$

0.42

$

1.79

$

1.67

Recurring capital expenditures

(15,974

)

(14,419

)

(47,257

)

(45,467

)

AFFO attributable to common stockholders and unitholders

$

120,021

$

108,858

$

480,662

$

416,452

AFFO per common share and unit, diluted

$

0.40

$

0.37

$

1.63

$

1.51

(1) See Attachment 16 for definitions and other terms.

(2) Series E preferred shares are dilutive for purposes of
calculating FFO per share. Consequently, distributions to Series E
preferred shareholders are added to FFO and the weighted average
number of shares are included in the denominator when calculating
FFO per common share and unit, diluted.

(3) During 4Q16, the Company recognized a one-time tax
benefit of $2.4 million related to the conversion of certain
taxable REIT subsidiary entities into REITs.

(4) Casualty-related (recoveries)/charges on unconsolidated
joint ventures, net include casualty recoveries of $0.3 million
and $3.8 million for the three and twelve months ended December
31, 2016 related to UDR's share of the 717 Olympic casualty, which
is included in income/(loss) from unconsolidated entities in
Attachment 1.

Attachment 3

UDR, Inc.

Consolidated Balance Sheets (1)

(Unaudited)

December 31,

December 31,

In thousands, except share and per share amounts

2016

2015

ASSETS

Real estate owned:

Real estate held for investment

$

9,271,847

$

9,053,599

Less: accumulated depreciation

(2,923,072

)

(2,646,044

)

Real estate held for investment, net

6,348,775

6,407,555

Real estate under development

(net of accumulated depreciation of $0 and $0)

342,282

124,072

Real estate held for disposition

(net of accumulated depreciation of $553 and $830)

1,071

11,775

Total real estate owned, net of accumulated depreciation

6,692,128

6,543,402

Cash and cash equivalents

2,112

6,742

Restricted cash

19,994

20,798

Notes receivable, net

19,790

16,694

Investment in and advances to unconsolidated joint ventures, net

827,025

938,906

Other assets

118,535

137,302

Total assets

$

7,679,584

$

7,663,844

LIABILITIES AND EQUITY

Liabilities:

Secured debt

$

1,130,858

$

1,376,945

Unsecured debt

2,270,620

2,193,850

Real estate taxes payable

17,388

18,786

Accrued interest payable

29,257

29,162

Security deposits and prepaid rent

34,238

36,330

Distributions payable

86,936

80,368

Accounts payable, accrued expenses, and other liabilities

103,835

81,356

Total liabilities

3,673,132

3,816,797

Redeemable noncontrolling interests in the OP and DownREIT
Partnership

Consolidated Income Available for Debt Service to Annual Service
Charge

≥1.5x

4.9x

Yes

Secured Debt as a percentage of Total Assets

≤40.0%

10.7%

Yes

Total Unencumbered Assets to Unsecured Debt

≥150.0%

338.6%

Yes

Securities Ratings

Debt

Preferred

Outlook

Moody's Investors Service

Baa1

Baa2

Stable

Standard & Poor's

BBB+

BBB-

Stable

(1) See Attachment 16 for definitions and other terms.

(2) As defined in our credit agreement dated October 20, 2015.

(3) As defined in our indenture dated November 1, 1995 as
amended, supplemented or modified from time to time.

Attachment 16(D)

UDR, Inc.

Definitions and Reconciliations

December 31, 2016

(Unaudited)

All guidance is based on current expectations of future economic
conditions and the judgment of the Company's management team. The
following reconciles from GAAP Net income/(loss) per share for full
year 2017 and first quarter of 2017 to forecasted FFO, FFO as
Adjusted and AFFO per share and unit: